Settle credit card debt - how to negotiate with creditors and eliminate credit card debt

Settle credit card debt - how to negotiate with creditors and eliminate credit card debt

If you are burdened with enormous amounts of unsecured debts then it is better that you do not go for bankruptcy but rather settle the credit card debts by using the method of debt settlement. In this method you will have to hire a professional debt settlement firm which will negotiate with the creditors and eliminate the credit card debts that you have. This negotiation can be done by you but in case you are going for do it yourself arbitration, you will get 30% elimination whereas the professional help will pave the way to 50% or more. This happens because of the expertise that the negotiator have. Since you lack those expertise, you will lose and the creditor will win.

When you hire a professional debt settlement company, the negotiator from the company will advice delinquency to prove your financial trouble. At the same time, the negotiator will actually send a formatted letter to the creditor. The letter will have the following:

* The creditor will be informed that you are not in a position to repay the debt.

* The creditor will also be informed that you are planning for a settlement.

* The proof of your financial troubles will be attached.

This letter will ensure that the creditor does not take any legal steps against you. The lender will then wait for 12-16 months and then hires a collection agency for recovery of the dues that you have. The collection agency plays the trick and pushed the creditor on the back foot agrees only to pay back only 20% to 30% of the total money that the agency recovers. The negotiator knows when this deal takes place and the contacts the lender and says that you can repay 30-50% in bulk but the rest needs to be eliminated.

The negotiator informs the creditor in a professional way that you will be left with the only option of bankruptcy in case the deal is not embraced by the lender. The creditor actually agrees to the deal because of two reasons:

* The new deal will mean greater recovery.

* The idea of bankruptcy is intimidating for the creditors as they will lose the whole money.

The creditor then wipes off the debt that you have by at least 50%. You will then have to repay the remaining amount of the due to the lender in one single payment. This is how to negotiate with the creditors and eliminate credit card debt.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.

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